Assume that one day's labour in England can produce either 20 units of cloth or 2 units of wine,while in Portugal one day's labour can produce either 24 units of cloth or 12 units of wine.If England transfers 2 units of labour from wine to cloth and Portugal transfers 1 unit of labour from cloth to wine,what will the increase in combined output by those two workers be?

Question

Quizplus · Accepted Answer

England's 2 units of labor shift from wine to cloth results in 40 more cloth and 4 less wine. Portugal's 1 unit of labor shift from cloth to wine results in 12 more wine and 24 less cloth. Net change: 8 more wine (12-4) and 16 less cloth (40-24).

Assume That One Day's Labour in England Can Produce Either